Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations ...

[Beheh]

Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________ ________.
 a. Low; it can be spent only in virtual worlds.
  b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base.
  c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system.
  d. All of the above are true.

Question 2

Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and monetary base in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds rises and monetary base rises.
 b. The quantity of real loanable funds rises and monetary base falls.
 c. The quantity of real loanable funds and monetary base fall.
 d. The quantity of real loanable funds and monetary base remain the same.
 e. There is not enough information to determine what happens to these two macroeconomic variables.

[ladyjames123]

Answer to Question 1

.D

Answer to Question 2

.A